How to Use CPF for HDB Down Payment: Your Complete 2026 Guide
Your CPF Ordinary Account (OA) is one of the most powerful tools available for purchasing an HDB flat in Singapore, allowing you to use your retirement savings to significantly reduce the cash you need to pay upfront. At Homejourney, we prioritize helping you understand your options clearly so you can make confident decisions about one of life's biggest purchases.
Using CPF for your HDB down payment can reduce your immediate cash burden by up to 100%, depending on whether you're buying a BTO flat, a resale property, or taking an HDB loan versus a bank loan. This guide walks you through exactly how CPF works for down payments, the payment timelines you need to know, and the strategic decisions that will save you money.
Understanding CPF Usage for HDB Down Payments
Your CPF Ordinary Account can cover most or all of your HDB down payment, subject to specific limits that vary based on your loan type and property choice.[1] The key advantage is that you're using money that's already yours—funds you've been contributing throughout your working life—rather than depleting your savings account.
The amount of CPF you can use depends on three main factors: whether you're buying a BTO or resale flat, whether you're using an HDB loan or bank loan, and how much you're borrowing. Understanding these distinctions is crucial for planning your finances effectively.
When you use CPF for your down payment, the funds are deducted from your OA balance at the point of payment. This means your CPF savings will be lower after the purchase, but you'll retain any amount you choose to keep (up to S$20,000 if taking an HDB loan).[3] The remaining CPF continues to earn interest while you pay your mortgage through monthly installments.
CPF Down Payment Requirements: BTO Flats
For BTO flats purchased with an HDB loan, the down payment is 20% of the purchase price, and you can pay this entirely using CPF-OA funds, entirely in cash, or with a combination of both.[1] This flexibility is one of the reasons HDB loans are popular among first-time buyers who want to minimize cash outlay.
For example, if you're purchasing a $400,000 BTO flat with an HDB loan, your down payment would be $80,000. You could pay this entirely from your CPF-OA if you have sufficient balance, or split it between CPF and cash depending on your financial situation.
If you're taking a bank loan for your BTO instead, the down payment increases to 25%, with a minimum of 5% required in cash.[1] This means for the same $400,000 flat, you'd pay $20,000 in cash plus $80,000 from CPF or cash—giving you more flexibility in how you structure the payment.
The critical advantage of BTO purchases is access to the Staggered Downpayment Scheme, which allows eligible first-time buyers to split their down payment into two smaller payments: 5% when signing the Agreement for Lease and the remaining 15% when collecting the keys.[2] This can ease your cash flow significantly during the waiting period before your flat is ready.
CPF Down Payment Requirements: Resale Flats
Resale flats follow similar CPF rules but with different payment timelines. With an HDB loan, your down payment is 20% of the purchase price, payable entirely through CPF, entirely in cash, or a combination.[1] Unlike BTO flats, you cannot use the Staggered Downpayment Scheme for resale properties—you must pay the full down payment upfront when you sign the lease.
For resale flats with a bank loan, you have two options based on your loan amount:[1] If borrowing up to 75%, you pay 25% down (minimum 5% in cash, up to 20% from CPF). If borrowing up to 55%, you pay 45% down (minimum 10% in cash, up to 35% from CPF). The higher down payment requirement for lower loan amounts reflects the bank's risk assessment.
CPF payments for resale flats are processed once you've confirmed your financial plan through the HDB Resale Portal.[1] If paying with cash, you'll submit a Cashier's Order at your resale completion appointment. This timing is important—you need to have your CPF or cash ready before the completion date.
Payment Timeline: When to Pay Your Down Payment
Timing is everything when it comes to HDB down payments. For BTO flats with an HDB loan, you typically pay 20% of the down payment when signing the Agreement for Lease, which occurs around six months after booking your flat.[2] If you qualify for the Staggered Downpayment Scheme, you pay just 5% at this stage and the remaining 15% when collecting your keys—usually 3-4 years after booking.
For BTO flats with a bank loan, the standard timeline is 10% (5% cash + 5% CPF) at signing the Agreement for Lease, with the remaining 15% due at key collection. Under the Staggered Downpayment Scheme, you pay 10% (5% cash + 5% CPF) at signing and 15% at key collection.[2]
Resale flats require full payment when you sign the lease at the resale completion appointment. There's no staggered option, so you must have your full down payment ready—whether from CPF or cash. CPF payments are processed through the HDB Resale Portal once your financial plan is confirmed, while cash payments use a Cashier's Order.
Planning ahead is essential. If you're relying on CPF for your down payment, ensure your CPF-OA has sufficient balance well before your payment date. You can check your CPF balance through the CPF Board website or mobile app.
CPF Limits and Retention Rules
One important protection to understand: if you take an HDB loan, you can retain up to S$20,000 in your CPF-OA, meaning this amount won't be used for your down payment even if you have more available.[3] This retention protects a portion of your retirement savings while still allowing you to use CPF for your home purchase.
If taking a bank loan, you have full flexibility—you can choose to retain any amount of CPF and pay your down payment entirely in cash if you prefer.[1] This gives you more control over how much of your retirement savings you deploy for the property purchase.
Additionally, you must use available CPF-OA savings for your down payment before an HDB housing loan is granted for the remaining amount.[1] This is a requirement—you cannot simply choose to use all cash if you have CPF available. However, with bank loans, you have discretion over whether to use CPF at all.
Eligibility for Staggered Downpayment Scheme
The Staggered Downpayment Scheme is a game-changer for cash flow management, but it's not available to everyone. To qualify, you must meet these conditions:
- You are both first-timer applicants, OR you are a couple with one first-timer and one second-timer applicant
- You obtained a valid HDB Financial Eligibility (HFE) letter on or before the younger applicant's 30th birthday
- You have booked a 5-room or smaller flat
If you meet these criteria, the scheme allows you to pay just 5% of your down payment when signing the Agreement for Lease, with the remaining 15-20% due when collecting your keys. This can free up significant cash during the waiting period—money you could use for renovations, furnishings, or other moving expenses.
Verify your eligibility through HDB's official website or contact your local HDB branch directly. Homejourney recommends confirming your eligibility early in your flat search process so you can factor this into your financial planning.
Step-by-Step: Using CPF for Your Down Payment
Step 1: Calculate Your Down Payment Amount
Multiply your property's purchase price by the down payment percentage (20% for HDB loans, 25% for most bank loans). For a $400,000 BTO with an HDB loan, this is $400,000 × 20% = $80,000. Use HDB BTO Financing Guide 2026: Loans, Grants & Payment Timeline to understand your specific loan options.
Step 2: Check Your CPF-OA Balance
Log into your CPF account online or use the CPF mobile app to verify your current Ordinary Account balance. Remember that if taking an HDB loan, you can retain up to S$20,000, so your usable balance is your total OA minus S$20,000. Ensure you have sufficient balance to cover your down payment, or plan to use a combination of CPF and cash.
Step 3: Determine Your Loan Type and Structure
Decide whether you'll use an HDB loan or bank loan. HDB loans allow 100% CPF payment of the down payment (minus the S$20,000 retention), while bank loans require a minimum cash component (typically 5%). Compare the options using HDB Loan vs Bank Loan 2026: Which Should You Choose? | Homejourney to understand which suits your situation better.
Step 4: Gather Required Documentation
For CPF usage, you'll need your NRIC, proof of CPF balance, and documentation related to your property purchase (Agreement for Lease, valuation report, etc.). Review HDB Loan Documents Checklist 2026 | Homejourney Guide for a complete checklist of documents needed.
Step 5: Submit CPF Payment Authorization
For BTO flats, you'll authorize CPF payment through HDB's system when signing the Agreement for Lease. For resale flats, confirm your financial plan through the HDB Resale Portal, which triggers CPF payment processing. Your CPF Board will transfer the funds directly to HDB or the seller's conveyancer.
Step 6: Pay Any Cash Component
If you have a cash down payment component (particularly with bank loans), prepare a Cashier's Order or bank transfer as instructed by your bank or HDB. This is typically due at the same time as your CPF payment.
Comparing HDB Loan vs Bank Loan for CPF Usage
The choice between an HDB loan and bank loan significantly impacts how you use CPF for your down payment. With an HDB loan, you can use CPF to cover your entire 20% down payment (subject to the S$20,000 retention), meaning you might pay zero cash upfront. This is ideal if you want to preserve cash for renovations or other expenses.
With a bank loan, you must pay at least 5% in cash, with the remaining down payment coming from CPF or cash. While this requires more immediate cash outlay, bank loans often offer competitive interest rates, especially in a rising rate environment. The trade-off between CPF usage and interest rates is worth analyzing carefully.
To compare your specific options and see which loan type saves you the most money over your loan tenure, use HDB Loan vs Bank Loan 2026: Which Should You Choose? | Homejourney . This will help you understand the total cost of each option, not just the down payment structure.
Strategic Tips for Maximizing Your CPF Down Payment
Tip 1: Plan for the S$20,000 Retention
If taking an HDB loan, remember that S$20,000 of your CPF-OA will remain untouched. This is actually beneficial—it continues earning interest and provides a financial buffer. Factor this into your down payment planning so you're not caught off guard.
Tip 2: Use Staggered Downpayment Scheme to Your Advantage
If eligible, the Staggered Downpayment Scheme is a powerful tool. Paying just 5% upfront means you keep more cash available for the 3-4 year wait until key collection. This cash can be invested or used for other financial goals, then deployed for the second payment when your flat is ready.
Tip 3: Consider Your Future CPF Needs
While using CPF for your down payment reduces immediate cash needs, remember that CPF is meant for retirement. Evaluate whether depleting your CPF significantly will impact your retirement readiness. If you have substantial cash savings, consider using those for the down payment and preserving more CPF for retirement.
Tip 4: Account for Additional Costs Beyond Down Payment
Your down payment is just one cost. You'll also need to pay stamp duty (which can be reimbursed from CPF), legal fees, and survey fees. Ensure your total cash position accounts for these additional expenses, not just the down payment.
Tip 5: Lock in Your Mortgage Rate Early
Once you've confirmed your down payment structure and loan type, compare mortgage rates across multiple banks. Use Bank Rates to see current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other lenders. Even a 0.1% difference in interest rate can save you tens of thousands over a 25-year loan tenure.
Common Mistakes to Avoid
Mistake 1: Not Checking CPF Balance Early
Many buyers assume they have sufficient CPF without verifying. Check your balance at least 6 months before your expected down payment date. If you're short, you'll have time to adjust your plans—perhaps looking at a lower-priced property or increasing your cash down payment.
Mistake 2: Forgetting About the S$20,000 Retention
